Sources reveal that due to the response from the Chinese market, Audi is bumping up its local production by inking a deal with China’s SAIC Motor Corp that allows them to make cars locally with SAIC.
Currently, Audi produces all its cars in China with the FAW Group Corp at two plant locations, one in Foshan near Guangzhou, and the other in Changchun. While the Foshan unit churns out the A3 compact car, the Changchun plant is known to roll out the long-wheel-base versions of the A4 and A6 sedans, plus the Q3 and Q5 SUVs.
Audi could have been influenced into the deal as both SAIC and FAW are Volkswagen’s joint venture partners. Reports state that while Audi and SAIC officials have reportedly signed the “cooperation framework agreement” on Friday, Audi is expected to announce the move tomorrow.
Although neither of the parties could reveal details, it is obvious that this move should let Audi expand its production capacity considerably at a time when the Chinese auto market is booming, letting both Audi and its parent Volkswagen a means of exploiting the current demand.